Explore updated GST rates in India for 2025 across 0%, 5%, 12%, 18%, and 28% slabs. Learn tax changes on goods, services, and industries with key revisions.
GST rates in India for 2025 continue to be categorized into 0%, 5%, 12%, 18%, and 28% tax slabs. Essential items like fresh fruits, vegetables, milk, and unbranded food products remain exempt under the 0% GST rate, ensuring affordability for consumers.
Several industries have seen GST rate revisions, with railway goods, pens, and metal concentrates increasing from 5% or 12% to 18%. Conversely, some savory food items and namkeens have experienced a rate reduction from 18% to 12%, benefiting the food sector.
The GST Council’s decisions aim to streamline tax structures and address industry-specific concerns. Businesses must stay updated on these tax changes to ensure compliance, optimize Input Tax Credit (ITC) claims, and manage financial planning effectively under the latest GST framework.
In this blog, we will explore the updated GST rates for 2025, their impact on industries, and key changes in tax slabs. We will also discuss how businesses and consumers can navigate these changes for better compliance and financial management.
Comparison of Old vs. New GST Rates
The GST rates in India for 2025 are categorised into different slabs based on the nature of goods and services. Below is a summary of the new GST rates for specific goods and services:
| Category | Old GST Rate | New GST Rate |
| Railways Goods and Parts under Chapter 86 | 12% | 18% |
| Pens | 12% | 18% |
| Metal Concentrates and Ores | 5% | 18% |
| Certain Renewable Energy Devices | 5% | 12% |
| Recorded Media Reproduction and Print | 12% | 18% |
| Broadcasting, Sound Recordings, and Licensing | 12% | 18% |
| Printed Material | 12% | 18% |
| Packing Containers and Boxes | 12% | 18% |
| Scrap and Polyurethanes | 5% | 18% |
| Namkeens & Extruded/Expanded Savory Food | 18% | 12% |
| Certain Cancer Drugs | 12% | 5% |
| Car & Motorcycle Seats | 18% | 28% |
Zero Rated Supplies Under GST
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0% GST Rate Goods
| List of Goods | HSN Code | GST Rate |
| Milk | 401 | 0% |
| Eggs | 407 | 0% |
| Unpacked Rice | 1006 | 0% |
| Unpacked Curd | 403 | 0% |
| Fresh Vegetables | 0701 to 0714 | 0% |
| Fresh Fruits | 0803 to 0810 | 0% |
| Unbranded Atta (Flour) | 1101 to 1106 | 0% |
| Sanitary Napkins | 961900 | 0% |
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0% GST Rate Services
| List of Services | HSN Code | GST Rate |
| Educational Services by Charitable Trusts | 9992 or 9963 | 0% |
| Health Care Services | 9993 | 0% |
| Public Transport (Non-AC) | 9964 | 0% |
| Services by Religious Trusts | – | 0% |
5 % GST Items
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5 % GST Rate Goods
| List of Goods | HSN Code | GST Rate |
| UHT Milk | 401 | 5% |
| Yoghurt | 403 | 5% |
| Coal | 2701 | 5% |
| Edible Oils | 1507 to 1518 | 5% |
| Cashew Nuts | 0801, 0802, 0813 | 5% |
| Raisins | 806 | 5% |
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5 % GST Rate Services
| List of Services | HSN Code | GST Rate |
| Restaurant Services | 9963 | 5% |
| Housekeeping Services | 9954 | 5% |
| Printing of Newspapers, Books | 9988 | 5% |
GST 12 Percent Items List
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12% GST Rate Goods
| List of Goods | HSN Code | GST Rate |
| Condensed Milk | 0402 91 10, 0402 99 20 | 12% |
| Butter | 405 | 12% |
| Cheese | 406 | 12% |
| Marble and Granite Blocks | 2515, 1210, 2516 | 12% |
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12% GST Rate Services
| List of Services | HSN Code | GST Rate |
| Construction of Apartments | 9954 | 12% |
| Hotel Accommodation | 9963 | 12% |
| Transport of Passengers by Air | 9964 | 12% |
18 Percent GST Items List
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18% GST Rate Goods
| List of Goods | HSN Code | GST Rate |
| Mobile Phones | 8517 | 18% |
| Chocolate and Cocoa Products | 1804 to 1806 | 18% |
| Non-Alcoholic Beverages | 2202 91 00, 2202 99 90 | 18% |
| Perfumes and Toilet Waters | 3303 | 18% |
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18% GST Rate Services
| List of Services | HSN Code | GST Rate |
| Construction of Commercial Apartments | 9954 | 18% |
| Rental Services of Transport Vehicles | 9966 | 18% |
| Electricity, Gas, Water, and Other Distribution Services | 9969 | 18% |
Items With 28% GST
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28% GST Rate Goods
| List of Goods | HSN Code | GST Rate |
| Carbonated Beverages | 2202 | 28% |
| Tobacco or Tobacco Substitutes | 2402 | 28% |
| Air-conditioning Machines | 8415 | 28% |
| Motor Vehicles | 8701 to 8704 | 28% |
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28% GST Rate Services
| List of Services | HSN Code | GST Rate |
| Services Provided by Casinos and Race Clubs | 9954 | 28% |
| Gambling | 9963 | 28% |
GST Rates on Various Goods and Services
Additional Components of GST in India
Cess Under GST
Apart from the standard GST rates, certain goods attract an additional cess, primarily to discourage consumption and generate revenue for specific government initiatives. This cess is levied over and above the applicable GST rate and is typically imposed on goods that are considered luxury items or harmful to health.
Goods That Attract GST Cess
Some of the key products subject to GST cess include:
- Cigarettes and Tobacco Products – To discourage consumption due to health risks.
- Luxury Cars – To generate additional revenue from high-end goods.
- Aerated Drinks – Due to their classification as non-essential and potentially unhealthy products.
- Coal – To fund environmental initiatives and sustainable energy projects.
The revenue generated from GST cess is allocated for specific purposes, such as compensating states for revenue losses under the GST regime.
TDS and TCS Under GST
The Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) mechanisms help ensure compliance and improve tax collection efficiency under GST.
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TDS Under GST
- Applicable to government departments and notified entities making payments to suppliers of taxable goods and services.
- A 1% deduction (0.5% CGST + 0.5% SGST or 1% IGST) is made on payments exceeding ₹2.5 lakh.
- Helps track transactions and prevent tax evasion.
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TCS Under GST
- Applicable to e-commerce operators who collect tax from suppliers selling goods/services on their platform.
- A 1% TCS (0.5% CGST + 0.5% SGST or 1% IGST) is collected on the transaction value.
- Ensures accurate tax reporting and compliance for online businesses.
HSN and SAC Code System in GST
To ensure uniform classification of goods and services for taxation, India follows the HSN (Harmonized System Nomenclature) code for goods and the SAC (Services Accounting Code) system for services.
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HSN Code for Goods
- Developed by the World Customs Organization (WCO), it is an internationally recognized system.
- Categorizes goods into different sections and sub-sections for trade and taxation purposes.
- Determines the applicable GST rate (0% to 28%) for specific products.
- Businesses with an annual turnover above ₹5 crore must use a 6-digit HSN code, while those below ₹5 crore can use a 4-digit HSN code.
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SAC Code for Services
- Developed by India’s Service Tax Department for classifying services under GST.
- Ensures consistency in tax rates for various service categories.
- Like HSN codes, SAC codes determine the applicable GST rates, ensuring uniform tax treatment across services.
What Are the GST Rate Revisions Announced at the 55th GST Council Meeting?
At the 55th GST Council meeting, several items and services underwent GST rate revisions. Key changes include:
- Rice Kernels: Revised GST rates applied.
- Gene Therapy: Changes in GST applicability for this advanced medical treatment.
- ACC Blocks: Adjusted GST rates for these construction materials.
- Bank/NBFC Penal Charges: GST revisions for penal charges on loan defaults.
How to Calculate GST on Goods and Services?
To calculate GST, follow these steps:
- Identify the Selling Price – Sum of Cost Price + Profit.
- Apply GST Rate – Multiply Selling Price × GST Rate / 100.
- Calculate Final Price – Add the GST Amount to the Selling Price.
Example Calculation:
If the price of a product is ₹1,000 and the GST rate is 18%, then:
GST Amount = ₹1,000 × 18% = ₹180
Final Price = ₹1,000 + ₹180 = ₹1,180
How Is GST Calculated on MRP?
To calculate GST on the Maximum Retail Price (MRP), simply replace the GST-inclusive price in the formula with the MRP. Ensure that the MRP includes the GST component before applying this method.
By understanding whether the price includes GST or not, you can easily calculate the correct tax amount and total price for any goods or services.
Understanding GST rates helps businesses and consumers by: GST rates in India for 2025 continue to be structured into 0%, 5%, 12%, 18%, and 28% slabs, impacting various industries. While essential goods like fresh fruits, milk, and vegetables remain tax-free, items like railway goods, pens, and metal concentrates have seen rate increases to 18%. The food and hospitality sectors have benefited from GST reductions, with savory snacks and namkeens moving from 18% to 12%. These revisions aim to simplify taxation, ensure fair pricing, and optimize Input Tax Credit (ITC) for businesses under the updated GST framework. Staying informed about GST rate changes helps businesses ensure compliance, manage tax liabilities, and maximize tax benefits. Understanding these revisions allows consumers to make cost-effective purchases while enabling businesses to adjust pricing strategies and remain competitive in a dynamic tax environment. For businesses, staying informed about GST regulations is essential for seamless operations. Professional GST registration services can help the complexities of compliance and optimise your tax planning.
GST rates in India are 0%, 5%, 12%, 18%, and 28%, depending on the product or service. Essential goods attract lower rates, while luxury and sin goods fall under 28% with additional cess.
28% GST applies to luxury goods, SUVs, high-end electronics, and premium services.
3% GST applies to gold jewelry and bars, while 1.5% GST applies to diamonds.
Businesses can check GST rates using HSN (Harmonized System of Nomenclature) codes for goods and SAC (Service Accounting Code) for services.
Yes, electric vehicles are subject to a reduced GST rate of 18%, making them more affordable compared to conventional vehicles that attract higher GST rates.
The GST rate for pure labour contracts is 18%, except for exemptions like single residential units or government housing schemes.
GST on hotel rooms: 12% for tariffs ₹1,000–₹7,500 per night, 18% for above ₹7,500, and 0% for below ₹1,000.
GST rate on clothing in India is 12%, regardless of the item's price. This standard rate applies to all garments, eliminating the previous distinction where items priced up to ₹1,000 were taxed at 5%
GST on medicines in India varies: 5% for essential drugs, 12% for others, and 0% for life-saving drugs.
The GST rate for laptops in India is 18%
GST on under-construction flats: 1% for affordable housing, 5% for others; no GST on ready-to-move-in properties Why Are GST Rates Important?
Conclusion on GST Rates
FAQs on GST Rates in India
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